Use the following to answer questions:
Figure: Tax on Sellers
-(Figure: Tax on Sellers) The size of the tax in the diagram is:
A) $3.
B) $4.
C) $7.
D) $6.

Question

Use the following to answer questions:
Figure: Tax on Sellers 
-(Figure: Tax on Sellers) The size of the tax in the diagram is:
A) $3. 
B) $4. 
C) $7. 
D) $6.

Quizplus · Accepted Answer

The size of the tax is represented by the vertical distance between the supply curve (S) and the supply curve plus the tax (S+tax). In this diagram, that distance is $4, so the answer is B.

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